Kotak Mahindra Bank net profit up 31% at Rs 942 cr

Private sector lender Kotak Mahindra Bank reported 31% growth in consolidated net profit for the July-September quarter to Rs 942 crore.

The rise in net profit was on the back of strong growth in advances which led to a higher net interest income.

On a standalone basis, net profit rose 28% to Rs 569.5 crore. On a consolidated basis, net interest income the difference between interest earned and interest expended grew by 44% to Rs 2,278 crore.

The bank witnessed some pressure on asset quality with gross Non Performing Assets (NPA )increasing to 2.08% from 1.59 % in the corresponding quarter last fiscal. In the same period net NPA also increased to 0.93 from 0.84%.

In a release the lender said that the merger benefits from integration of ING Vysya Bank that has been merged to Kotak Mahindra Bank since April will flow in due course.

“Integration process is progressing as planned and we are seeing positive traction in SA growth, retail loans and insurance distribution. Various initiatives have been kicked off for cost and income synergies which will start showing results in due course. With our wider national footprint and the breadth of product & service offerings, we are well poised to capitalise on the opportunity offered by the country which is on track for a sustainable growth story,” said Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank.

Net interest margin, a key indicator of bank’s profitability, stood at 4.4%. The lender remained well capitalised with a consolidate capital adequacy ratio at 16.5%. At the end of the September quarter, advances rose to Rs 1,34,669 crore.

Kotak Mahindra Group